Fair Credit Reporting : Your Credit Rights

Do you know your credit rights? Your credit is one of the most important things that you can have when considering your personal finance. And your regular monitoring and protection of it is imperative. And why is that? Your credit is what determines your ability to obtain loans, credit, insurance, leases and even employment in many cases. However, there are many things in life that can occur which can adversely affect a person’s credit. Many of the things that can cause a negative impact on credit may not even be entirely that person’s fault due to illness, loss of a job or income, errors on a credit report, identity theft and more.

In order to ensure that every individual receives fair and equal opportunities to obtain loans, credit, correct any errors on a credit report, as well as receive fair representation when potential lenders or employers look at an individual’s credit history, the FTC (Federal Trade Commission) enforces YOUR right to receive credit as well as the right to dispute any potential discrepancies on your credit report.

Several of the major laws which protect consumers’ rights in the United States include The Federal Fair Credit Reporting Act (FCRA), The Equal Credit Opportunity Act (ECOA), The Fair Credit Billing Act (FCBA), Electronic Fund Transfer Act (EFTA), and The Fair Debt Collection Practices Act (FDCPA).

The Federal Fair Credit Reporting Act (FCRA)
This act enforces the privacy as well as accuracy of the information in your credit report provided by consumer credit reporting companies. Under the FCRA, consumers receive the right to receive their own updated credit report, know who has looked at their credit report and/or who has denied any applications using a credit report as well as the reporting company that was used in order to obtain your credit report. In addition, according to the FCRA, individuals also have the right to dispute any inaccurate details in their credit report which must be investigated by the reporting company, unless it has been deemed as a “frivolous” dispute. If you receive a report back stating that the item you have disputed has been investigated and is indeed accurate, the law allows a person to put a statement about the item(s) in their own credit report as a reference for future credit inquiries.

The Equal Credit Opportunity Act (ECOA)
This act enforces equal credit opportunities in that a potential creditor cannot discriminate on the basis of sex, religion, nationality, race, marital status, or evidence of public assistance. All of the items, except for religion, can be inquired upon; however, again, they may not be used as a means of obtaining any form of credit. In addition, if a person feels as though they have, in fact, been discriminated against in regards to obtaining credit, they have the right to receive reasons as to why their application has been denied.

 The Fair Credit Billing Act (FCBA)
Along with The Electronic Fund Transfer Act (EFTA), the FCBA allows individuals a set of procedures for proper resolution of potential mistakes on credit billing and EFT statements. Some of the potential mistakes that both laws enforce would be disputes regarding unauthorized or ‘questionable’ charges that have appeared on your billing statement or even charges in the wrong amount. If a creditor fails to send a bill to your current address and you have sent your change of address information in at least prior to 20 days of the statement date, you are protected under these laws and are provided procedures for correcting this issue as well.

The Fair Debt Collection Practices Act (FDCPA)
This law entitles individuals the right to be treated fairly by debt collectors or collections agencies. This means that debt collectors cannot use any means which would be considered as abusive, unfair, misleading or deceptive in order to collect your debts owed. The FDCPA applies to all personal and household debts including debts for medical care, car payments, or credit card accounts.
The FDCPA states that debt collectors can only contact an individual between the hours of 8a.m. and 9.pm. and MUST identify themselves. They cannot contact a person at their place of employment when they know the employer will disapprove and cannot use abusive tactics or those which are considered harassment. In addition, debt collectors cannot lie, cheat, falsely state that an individual is a criminal for not paying your debts, and must stop contacting the individual or household if that person has sent a written letter(s) or statement requesting that the particular debt collector(s) stop contacting them immediately.